“We’ve shown it can work. And actually the good parts of Coalition are because you have these arguments within government and you have to proceed on a rational basis – that’s good.

“I think what’s bad about it is that sometimes you have to make compromises that are not necessarily in the long-term interests of the country.”

Downing Street later suggested that Mr Cameron was referring to welfare policies that have been held back by the Liberal Democrats as well as human rights laws that the Government has been unable to scrap.

The Prime Minister added: “I prefer a more decisive form of government. I think what the British people want is a government with a very clear plan that acts on that plan.

"If the plan works then keep them in; if the plan doesn't work then kick them out."

The Daily Telegraph earlier this year disclosed that Mr Cameron has started planning for a second coalition with the Liberal Democrats after 2015.

The Prime Minister has held private talks with Cabinet ministers over new Conservative Party rules which would make it easier to strike another deal.

Under the plans, backbench Tories would be consulted on the new power-sharing agreement with the final text being put to them in a vote.

Mr Cameron wants Conservative MPs to put their names to any second coalition agreement and “dip their hands in the blood”, a senior source said.

Tory backbenchers unhappy at Mr Cameron’s deal with Mr Clegg have launched a string of rebellions since the last election, on issues including Europe, Lords reform and gay marriage.

Some rebels say they do not feel bound to back all the Coalition’s policies because they were not consulted about them. Mr Cameron is understood to want to avoid such a situation if he is forced to agree a second coalition.

It is hoped the new rules would help to persuade sceptical MPs to give their full backing to a new deal.